I have a stock Droid 4 running the latest XiiaLive from the market. I have two local Shoutcast servers that I use to stream songs to my phone over WiFi. The first server uses sc_serv and Winamp to as the encoder (thus MP3), and the second server uses sc_serv and sc_trans with AAC+ as the encoder. I don't have anything special set in the configuration files, other than the servers do not connect to public YP.
The sc_serv is the 07/31/2011 version, and sc_trans is 10/07/2011.
On my plain Droid, XiiaLive connects fine to both servers. The Droid 4 running XiiaLive will only connect to the first configuration cleanly. It does not connect to the second AAC+ encoder shoutcast. It appears to be synchronizing, but then the display shows something like PVMFPending (it disappears too fast to see) and the connection is dropped.
If I change to using the internal streaming engine, XiiaLive running on the Droid 4 will connect to both Shoutcast servers.
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